International business finance Case Study Example | Topics and Well Written Essays - 3000 words

International business finance - Case Study ExampleThe report comprehensively analyses the strategies at hand for the XP PLC multinational smart set and consequently recommends the best strategy/option to be adopted on the basis of financial facts.The XP plc Companys strengths include diversified business operations in a number of countries. The company has a holding company situated in France. However, it has a number of subsidiaries operating(a) in foreign countries much(prenominal) as in Germany, Australia, Monaco, and Poland. Additionally, the firm has stable sales revenue of everywhere 60 million Euros. This is a clear indication that the company made superior products that are adapt for its customers, hence gaining customer loyalty. The customer loyalty comes about due to the satisfaction of the customers preferences and choices. For a company to exsert operating in a business environment, it must be in a position to defer profits to cater for company expenses, financing activities, investment purposes and maximizing the companys value. Since the firm is duty at a net profit of 8%, it has a stable future operation in the economy. A business organisation that is incapable of financing its business activities using internal funds such as equity is compelled to borrow from external sources available. Among the external sources of funds is the debt that increases the firms financial leverage. Since the affinity of the debt is smaller as compared to the equity, the financial risk is reduced hence a strength to the company that could other than be a threat had the debt outweighed the equity capital.The multinational company suffers from a stiff competition in the service industry. This has caused the company to at least diversify its operation worldwide to increase its products and services delivery. The company uses bureaucratic kind of management making it difficulty in making decisions faster.XP plc being a multinational company, it has a chance for diversity. The firm has